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Leases

12 Months Ended

Dec. 31, 2024

4. Leases

Lessor Accounting

We generate the majority of our revenue by leasing operating properties to customers under operating lease agreements. The manner in which we recognize these transactions in our financial statements is described in Note 2. “Summary of Significant Accounting Policies—Revenue Recognition” to these Consolidated Financial Statements. Our largest customer’s total revenue approximates 12% of our total revenue base. No other individual customer makes up more than approximately 6% of our total revenue.

A summary of minimum lease payments due from our customers under operating leases of land, prestabilized development properties, and operating properties with lease periods of greater than one year at December 31, 2024 is shown below. These amounts do not reflect future rental revenues from renewal or replacement of existing leases unless we are reasonably certain we will exercise the option or the lessee has the sole ability to exercise the option. Reimbursements of operating expenses and variable rent increases are excluded from the table below.


(Amounts in thousands)	Operating leases
2025	$	3,176,969
2026		2,522,253
2027		2,097,594
2028		1,780,247
2029		1,455,752
Thereafter		5,028,089
Total	$	16,060,904

Lessee Accounting

We lease space and equipment at certain of our data centers from third parties under noncancelable lease agreements. Leases for our data centers expire on various dates through 2069. Certain of our data centers, primarily in Europe and Singapore, are subject to ground leases. As of December 31, 2024, the termination dates of these ground leases ranged from 2038 to 2073. In addition, several of our regional office locations are subject to leases with termination dates ranging from 2025 to 2036.

The leases generally require us to make fixed rental payments that increase at defined intervals during the term of the lease plus pay our share of common area, real estate and utility expenses as incurred. The leases do not contain residual value guarantees and do not impose material restrictions or covenants on us. Further, the leases have been classified and accounted for as either operating or finance leases. Rent expense related to operating leases included in Rental property operating and maintenance expense in the consolidated income statements amounted to approximately $153.5 million, $153.2 million and $144.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024, the weighted average remaining lease term for our operating leases and finance leases was 12 years and 18 years, respectively. We do not include renewal options in the lease term for calculating the lease liability unless we are reasonably certain we will exercise the option or the lessor has the sole ability to exercise the option. The weighted average incremental borrowing rate was 3.4% for operating leases and 2.4% for finance leases at December 31, 2024. We assigned a collateralized interest rate to each lease based on the term of the lease and the currency in which the lease is denominated.

Maturities of lease liabilities as of December 31, 2024 were as follows (in thousands):


	Operating		Finance
	lease liabilities		lease liabilities⁽¹⁾
2025	$	160,633	$	70,544
2026		160,465		19,426
2027		159,090		19,918
2028		149,794		85,034
2029		149,929		12,511
Thereafter		806,445		181,866
Total undiscounted future cash flows		1,586,356		389,299
Less: Imputed interest		(292,137)		(70,016)
Present value of undiscounted future cash flows	$	1,294,219	$	319,283

(1) Included in accounts payable and other accrued liabilities on the consolidated balance sheet.